Last week, reports began to swirl around the internet that
AMD slashed 5% of its workforce. AMD denied
the reports and issued a statement saying, "We did not have a
workforce reduction."

It appears that the reports of job cuts were true; however,
the size and timing of the layoffs were wrong. According to Information
Week, AMD plans to axe off 1,600 employees before the close of
September -- this would represent a 10% reduction in AMD's current workforce of
16,000 employees.

The jobs are a necessary move to help lift AMD from the
gutter in terms of financial performance. AMD did not disclose which locations
or what positions within the company would see the bulk of the workforce reduction.

AMD had a rough 2007 and reported revenues of $1.77B and a
$1.722B loss during the closing
quarter of the year. 2007 yearly totals saw AMD with $6.012B in revenue and
a net loss of $3.379B.

AMD expects that Q1 revenue will come in at roughly $1.5B or
15% lower than Q4 2007 -- the loss came from an unexpected decline in every
market that AMD competes.

We will still have to wait a few days longer to hear the
full damage report for AMD's Q1 earnings. Despite the already grim forecast,
AMD is looking forward to the latter half of the year when it will push its
45nm processors to customers.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997